Which of the Following Is Included in GDP

question 34

Multiple Choice

Which of the following is included in GDP?

• A)​a U.S.company purchasing stock of a foreign company
• B)​a foreign company purchasing stock of a U.S.company
• C)​a U.S.company purchasing stock of another U.S.company
• D)​None of the above.

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Definitions:

Relevant Range

The range of activity or volume over which the assumptions about fixed and variable cost behavior are valid.

Fixed Costs

Costs that do not change with the level of output or sales in the short term, such as rent, salaries, and insurance.

Cost Behaviour

Cost behavior is the manner in which a cost changes as the related activity level or volume changes, typically classified into fixed, variable, and mixed costs.

Cost Estimation

The process of forecasting the likely costs of a project or production, based on various factors and historical data.